The Brazilian Ministry of Finance's Secretariat of Awards and Lotteries (SPA) has introduced new regulations aimed at cutting off funding to unlicensed gambling operators.
Under these regulations, banks, payment processors, and financial platforms must now block any transactions related to illegal gambling sites, thereby strengthening the enforcement of Law No. 14.790/2023.
According to the new decree, financial institutions and payment providers are not allowed to open or maintain accounts for companies involved in fixed-odds betting unless they have permission from the SPA.
This also extends to any deposits, withdrawals, or payment of winnings associated with these platforms.
Institutions are now also required to actively monitor suspicious activities and report to the SPA using the Brazilian Electronic Information System (SEI) within 24 hours.
These reports must include the identity of the account holder, associated Pix keys, account numbers, and reasons for suspicion.
If the SPA finds that a financial provider is processing transactions for an unauthorized gambling platform, it will issue a formal notice, demanding detailed transaction records, immediate termination of relations with the operator, and even proof of measures taken to prevent future transactions.
Failure to comply with all the above regulations may lead to regulatory penalties or even legal action.
To further promote the implementation of the revised law, SPA Secretary Regis Dudena stated that this is a crucial measure to combat offshore operators and protect Brazilian gamblers from unregulated gambling activities.
Dudena said: "This measure, along with website blocking and advertisement removal, helps to cut off funding to unlicensed sites that pose financial risks to users. Our goal is to break the cycle of illegal activities."
He added that this decree strengthens Brazil's efforts to create a safer, more transparent, and regulated gambling environment.
To support enforcement and assist institutions, the SPA will maintain a public register listing authorized fixed-odds betting operators, operators whose license applications have been denied, and suspected illegal gambling sites that have been reported to the telecommunications department and blocked.
This register is designed to help relevant parties remain compliant while informing the public about who has obtained permission to legally operate in Brazil.
In summary, as the number of legal gambling options increases and licenses are issued, the SPA aims to protect consumers and ensure that licensed operators are not harmed by the black market.
As Brazil continues to refine its regulated gambling market, payment enforcement will be key to maintaining legality and hopefully eliminating overseas competition.
